-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SdXmNR2ghtpAoCpAoSV5YYr6jI+3Zgl1PKkltaqQeLWE7n33ZjGpZUx0aACBAcwq qr+QL2d2x7SPQ8EAG+K63g== 0000935069-99-000152.txt : 19990827 0000935069-99-000152.hdr.sgml : 19990827 ACCESSION NUMBER: 0000935069-99-000152 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990826 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WARBURG PINCUS WORLDPERKS MONEY MARKET FUND INC CENTRAL INDEX KEY: 0001066796 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MD FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-08899 FILM NUMBER: 99699933 BUSINESS ADDRESS: STREET 1: 466 LEXINGTON AVENUE CITY: NEW YORK STATE: NY ZIP: 10017-3167 BUSINESS PHONE: 2128789548 MAIL ADDRESS: STREET 1: 466 LEXINGTON AVENUE CITY: NEW YORK STATE: NY ZIP: 10017-3167 FORMER COMPANY: FORMER CONFORMED NAME: WARBURG PINCUS MONEY MARKET FUND INC DATE OF NAME CHANGE: 19980723 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WARBURG PINCUS WORLDPERKS TAX FREE MONEY FUND INC CENTRAL INDEX KEY: 0001066776 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-08901 FILM NUMBER: 99699934 BUSINESS ADDRESS: STREET 1: 466 LEXINGTON AVENUE CITY: NEW YORK STATE: NY ZIP: 10017-3167 BUSINESS PHONE: 2128789548 MAIL ADDRESS: STREET 1: 466 LEXINGTON AVENUE CITY: NEW YORK STATE: NY ZIP: 10017-3167 FORMER COMPANY: FORMER CONFORMED NAME: WARBURG PINCUS TAX FREE MONEY MARKET FUND INC DATE OF NAME CHANGE: 19980723 N-30D 1 WARBURG PINCUS WORLD PERKS SAR NORTHWEST AIRLINES - ------------------------- WORLDPERKS (REGISTRATION MARK) INVESTORMILES (SERVICE MARK) [GRAPHIC OMITTED] SEMIANNUAL REPORT JUNE 30, 1999 WARBURG PINCUS WORLDPERKS MONEY MARKET FUND (BOX) WARBURG PINCUS WORLDPERKS TAX FREE MONEY MARKET FUND [GRAPHIC OMITTED] More complete information about the funds, including charges and expenses, is provided in the PROSPECTUS, which must precede or accompany this document and which should be read carefully before investing. You may obtain additional copies by calling 800-WARBURG(800-927-2874) or by writing to Warburg Pincus WorldPerks Funds, P.O. Box 9030, Boston, MA 02205-9030. Warburg Pincus Funds is a division of Credit Suisse Asset Management, LLC. WARBURG PINCUS FUNDS (LOGO) [GRAPHIC OMITTED] FROM TIME TO TIME, THE FUNDS' INVESTMENT ADVISER AND CO-ADMINISTRATOR MAY WAIVE SOME FEES AND/OR REIMBURSE SOME EXPENSES, WITHOUT WHICH PERFORMANCE WOULD BE LOWER. WAIVERS AND/OR REIMBURSEMENTS ARE SUBJECT TO CHANGE. PERFORMANCE DATA REPRESENT PAST PERFORMANCE AND ARE NOT A GUARANTEE OF FUTURE PERFORMANCE. THE FUNDS' YIELDS WILL FLUCTUATE. EACH FUND SEEKS TO MAINTAIN A CONSTANT NET ASSET VALUE OF $1 PER SHARE; THERE CAN BE NO ASSURANCE THAT IT CAN DO SO ON A CONTINUING BASIS. AN INVESTMENT IN EACH FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT. THE VIEWS OF THE FUNDS' MANAGEMENT ARE AS OF THE DATE OF THE LETTERS AND PORTFOLIO HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF JUNE 30, 1999; THESE VIEWS AND PORTFOLIO HOLDINGS MAY HAVE CHANGED SUBSEQUENT TO THESE DATES. NOTHING IN THIS DOCUMENT IS A RECOMMENDATION TO PURCHASE OR SELL SECURITIES. WARBURG PINCUS WORLDPERKS MONEY MARKET FUND SEMIANNUAL INVESTMENT ADVISER'S REPORT--JUNE 30, 1999 - -------------------------------------------------------------------------------- AUGUST 12, 1999 Dear Shareholder: Moving into 1999, U.S. economic prospects appeared strong, with consumer confidence seemingly as high as the stock market. This reflected optimism over the domestic economy and a belief that the global economic crisis was abating. The money market yield curve became dramatically steeper over the course of the period, as the market realized that the Federal Reserve would most likely reverse its earlier accommodative stance. The Fed adopted a tightening bias at its May meeting and a 25 basis-point interest-rate increase at its June 30 meeting. These moves were preceded by sharply higher interest rates across the short-term yield curve. The annualized yield for Warburg Pincus WorldPerks Money Market Fund for the seven-day period ended June 30, 1999 was 4.24% (without waivers and/or reimbursements, the fund's annualized seven-day yield would have been 3.38%). Net assets steadily increased throughout the period and totaled $15.0 million on June 30, 1999, compared to $12.9 million on December 31, 1998. The fund's average weighted maturity on June 30 was 48 days, vs. 17 days at the end of December. This reflected the increasingly attractive rate advantage we saw at the longer end of the money-market yield curve. We remain positioned to further extend the fund's maturity as yield opportunities arise. Going forward, the fund will continue to emphasize high-quality securities in an effort to provide competitive returns consistent with preservation of capital and liquidity. We are committed to providing both an awarding investment experience to our shareholders and an attractive, convenient means of accumulating WorldPerks* Bonus Miles, which can be used for free and discounted award travel on Northwest Airlines, Continental Airlines, KLM Royal Dutch Airlines and other WorldPerks partner members. We appreciate your continued support and investment in the fund. Eugene L. Podsiadlo BlackRock Institutional Management Corporation President Sub-Investment Manager Warburg Pincus WorldPerks Fund - ----------------- *WorldPerks is a registered trademark of Northwest Airlines, Inc. 1 WARBURG PINCUS WORLDPERKS TAX FREE MONEY MARKET FUND SEMIANNUAL INVESTMENT ADVISER'S REPORT--JUNE 30, 1999 - -------------------------------------------------------------------------------- August 12, 1999 Dear Shareholder: During the first half of 1999, U.S. economic conditions were favorable. The trend of consistent growth continued while inflation remained well-contained. Against this positive backdrop, municipal money market funds, in general, experienced some growth in assets but were not immune to volatility. Underlying market fundamentals (e.g., strong investor demand and limited issuance) put pressure on interest rates during the period. Often, the municipal money-market yield curve was inverted, with longer-date issues offering lower yields than those found on shorter-dated securities. Assets in Warburg Pincus WorldPerks Tax Free Money Market Fund increased by about 15% from December 31, 1998 to June 30, 1999. Due to ongoing interest-rate volatility, we directed the bulk of the fund's new assets into variable-rate demand notes (whose yields traded in a range of 1.2% to 4.5% over the first half of 1999). That notwithstanding, we found occasional opportunities to purchase longer-dated, fixed-coupon paper. As of June 30, the fund's composition included small positions in general market notes, put bonds and tax-exempt commercial paper that, at time of purchase, offered positive yield value vs. variable-rate demand notes. On June 30, 1999, the fund's average weighted maturity was 31 days and its annualized seven-day yield was 2.79% (without waivers and/or reimbursements, the fund's annualized seven-day yield would have been 1.79%). Going forward, the fund will continue to emphasize high-quality municipal securities in an effort to provide competitive after-tax returns consistent with preservation of capital and liquidity. We are committed to providing both an awarding investment experience to our shareholders and an attractive, convenient means of accumulating WorldPerks* Bonus Miles, which can be used for free and discounted award travel on Northwest Airlines, Continental Airlines, KLM Royal Dutch Airlines and other WorldPerks partner members. We appreciate your continued support and investment in the fund. Eugene L. Podsiadlo BlackRock Institutional Management Corporation President Sub-Investment Manager Warburg Pincus WorldPerks Fund - ----------------- *WorldPerks is a registered trademark of Northwest Airlines, Inc. THE FUND'S INCOME MAY BE SUBJECT TO STATE AND CITY TAXES AND, FOR CERTAIN INVESTORS, THE FEDERAL ALTERNATIVE MINIMUM TAX. 2 WARBURG PINCUS WORLDPERKS MONEY MARKET FUND STATEMENT OF NET ASSETS--JUNE 30, 1999 (UNAUDITED) - --------------------------------------------------------------------------------
RATINGS PAR (S&P/MOODY'S) MATURITY RATE% VALUE ---- ---------------- ---------- -------- ------ CERTIFICATES OF DEPOSIT (12.3%) DOMESTIC CERTIFICATES OF DEPOSIT (4.0%) $ 600,000 Wilmington Trust (A-1, P-1) 01/14/00 5.070 $ 600,000 ----------- YANKEE DOLLAR CERTIFICATES OF DEPOSIT (8.3%) 150,000 Bank of Montreal CHIC (A-1+, P-1) 05/10/00 5.180 149,950 600,000 Bank of Nova Scotia (NR, NR) 07/09/99 6.256 600,135 200,000 Cibc NY Yankee (A-1+, P-1) 07/28/99 4.880 200,004 300,000 Cibc Yankee Cd (A-1+, P-1) 03/15/00 5.180 300,014 ----------- 1,250,103 TOTAL CERTIFICATES OF DEPOSIT (Cost $1,850,103) 1,850,103 ----------- COMMERCIAL PAPER (51.7%) ASSET-BACKED SECURITIES (18.4%) 600,000 Barton Capital Corp. (A-1+, P-1) 07/13/99 4.810 599,038 600,000 Dakota Certificates (A-1+, P-1) 07/07/99 4.810 599,519 600,000 Delaware Funding Corp. (A-1+, P-1) 07/21/99 4.800 598,400 200,000 Enterprise (A-1+, P-1) 07/26/99 4.810 199,332 300,000 Preferred Receivables Funding Corp. (A-1, P-1) 08/11/99 4.960 298,305 459,000 Windmill Funding Corp. (A-1+, P-1) 07/19/99 4.820 457,894 ----------- 2,752,488 ----------- COMMUNICATIONS EQUIPMENT, NEC (3.9%) 600,000 Alcatel Alsthom Inc. (A-1, P-1) 08/19/99 4.870 596,023 ----------- MOTOR VEHICLES & CAR BODIES (1.5%) 225,000 Daimler-Benz North America Corp. (A-1, P-1) 07/15/99 4.900 224,571 ----------- NEWSPAPER: PUBLISHING OR PUBLISH & PRINTING (1.6%) 250,000 Knight-Ridder, Inc. (A-1, NR) 08/17/99 5.070 248,345 ----------- OIL (9.9%) 500,000 AB SPIN TAB SWEDMORTGAGE (NR, P-1) 09/07/99 4.880 495,391 200,000 Abbey National North America (A-1+, P-1) 07/08/99 4.850 199,811 200,000 Abbey National North America (A-1+, P-1) 01/31/00 4.920 194,151 600,000 San Paolo U.S. (A-1, P-1) 08/10/99 4.830 596,780 ----------- 1,486,133 ----------- PERSONAL CREDIT INSTITUTIONS (3.9%) 600,000 Countrywide Funding Corp. (A-1, NR) 08/20/99 4.930 595,892 ----------- PETROLEUM REFINING (1.9%) 300,000 Repsol International (A-1+, P-1) 10/15/99 4.820 295,742 ----------- SECURITY BROKERS, DEALERS & FLOTATION COS. (2.0%) 311,000 Merrill Lynch & Co. Inc. (A-1+, P-1) 07/16/99 4.900 310,365 ----------- SHORT-TERM BUSINESS CREDIT INSTITUTIONS (5.3%) 500,000 CIT Group Holdings Inc. (A-1, P-1) 08/17/99 4.830 496,847 300,000 General Electric Capital Corp. (A-1+, P-1) 07/16/99 4.900 299,388 ----------- 796,235 -----------
See Accompanying Notes to Financial Statements. 3 WARBURG PINCUS WORLDPERKS MONEY MARKET FUND STATEMENT OF NET ASSETS (CONT'D)--JUNE 30, 1999 (UNAUDITED) - --------------------------------------------------------------------------------
RATINGS PAR (S&P/MOODY'S) MATURITY RATE% VALUE ---- ---------------- ---------- -------- ------ COMMERCIAL PAPER (CONT'D) TELEPHONE COMMUNICATIONS (3.3%) $500,000 AT&T Corp. (A-1+, P-1) 08/17/99 4.790 $ 496,873 ----------- TOTAL COMMERCIAL PAPER (Cost $7,802,667) 7,802,667 ----------- SHORT TERM INVESTMENTS (6.7%) 1,000,000 Repurchase Agreement with Morgan Stanley & Co. Inc. dated 6/30/99 at 6.700% to be repurchased at $1,000,186 on 07/01/99. (Collaterized by $1,007,057 U.S. Treasury Note at 7.750%, due 11/30/99. Market value of collateral is $1,020,782.) (Cost $1,000,000) 07/01/99 5.900 1,000,000 ----------- VARIABLE RATE DEMAND NOTES (28.5%) 400,000 American Honda Finance Corp. Honda Motor Company, Ltd. (NR, C) 08/13/99 4.950 399,931 500,000 Bayerische Hypo-Und Vereinsbank A-1+, P-1) 07/14/99 4.810 499,764 600,000 Goldman Sachs Group (A-1, B) 07/07/99 5.200 600,585 500,000 Province of Ontario (NR, A-3) 08/17/99 5.000 500,022 500,000 Smm Trust 1999-E NR, NR 07/06/99 4.983 500,000 150,000 Smm Trust 1999-I NR, NR 08/26/99 5.040 150,000 500,000 Texaco Capital, Inc. (A1, B) 08/04/99 4.845 499,587 600,000 U.S. Bancorp (A1, C) 07/27/99 4.979 600,440 500,000 Wells Fargo & Co. (NR, B) 09/30/99 4.880 499,684 ----------- TOTAL VARIABLE RATE DEMAND NOTES (Cost $4,250,013) 4,250,013 ----------- TOTAL INVESTMENTS ATVALUE (99.2%) (Cost $14,902,783*) 14,902,783 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES (0.8%) 123,526 ----------- NET ASSETS (100.0%) (applicable to 15,026,348 shares) $15,026,309 =========== NET ASSETS VALUE, offering and redemption price per share ($15,026,309 (DIVIDE) 15,026,348) $ 1.00 ===========
INVESTMENT ABBREVIATIONS NR = Not Rated - -------------------------------------------------------------------------------- * Also cost for federal income tax purposes: See Accompanying Notes to Financial Statements. 4 WARBURG PINCUS WORLDPERKS MONEY MARKET FUND STATEMENT OF NET ASSETS (CONT'D)--JUNE 30, 1999 (UNAUDITED) - -------------------------------------------------------------------------------- MATURITY SCHEDULE (DAYS) PAR PERCENTAGE OF PORTFOLIO ----------------- ----------- -------------------------- (CUMULATIVE) 1-7 $ 2,700,000 18.1% 18.1% 8-14 1,900,000 12.7 30.8 15-30 2,895,000 19.4 50.2 31-60 4,900,000 32.8 83.0 61-90 500,000 3.3 86.3 91-120 800,000 5.4 91.7 121-150 0 0.0 91.7 Over 150 1,250,000 8.3 100.0 ------------ ------ $14,945,000 100.0% ============ ===== Average Weighted Maturity -- 48.13 days See Accompanying Notes to Financial Statements. 5 WARBURG PINCUS WORLDPERKS TAX FREE MONEY MARKET FUND STATEMENT OF NET ASSETS -- JUNE 30, 1999 (UNAUDITED) - --------------------------------------------------------------------------------
RATINGS PAR (S&P/MOODY'S) MATURITY RATE%(DAGGER) VALUE ---- ---------------- ---------- -------- ------ MUNICIPAL OBLIGATIONS (100.1%) ALASKA (4.0%) $ 500,000 Valdez, Alaska, Marine Terminal Revenue Bonds (Arco Transportation Project) Series A (Cost $500,000) (A-1, P-1) 07/16/99 3.200 $ 500,000 ----------- GEORGIA (4.7%) 100,000 Burke County Development Authority Pollution Control Revenue Bonds (Georgia Power Company Plant Vogtle Project) Series 1994 VRDN (A-1, VMIG-1) 07/01/99 3.500 100,000 500,000 Burke County Development Authority Pollution Control Revenue Bonds (Oglethorpe Power Corp. Project) Series 1994A VRDN (FGIC Insurance LOC) (A-1+, VMIG-1) 07/07/99 3.300 500,000 ----------- TOTAL GEORGIA (Cost $600,000) 600,000 ----------- ILLINOIS (0.8%) 100,000 City of Chicago General Obligation Tender Note Series 1992B (Cost $100,000) (A-1+, VMIG-1) 07/07/99 3.500 100,000 ----------- INDIANA (4.0%) 500,000 Indiana State Development Financial Authority Pollution Control Revenue Bonds (Canadian Imperial Bank LOC) (Cost $100,000) (A-1+, VMIG-1) 07/07/99 3.500 500,000 ----------- IOWA (4.0%) 500,000 Iowa Finance Authority Solid Waste Dispo Solid Waste Disposal Revenue Bonds (Cedar River Paper Co. Project) (Bank of Nova Scotia LOC) (Cost $500,000) (A-1+, P-1) 07/01/99 3.800 500,000 ----------- LOUISIANA (7.1%) 500,000 Louisiana Offshore Terminal Authority First Stage 1991 A (Loop Inc.) VRDN (Morgan Guaranty LOC) (A-1+, VMIG-1) 07/07/99 3.450 500,000 400,000 Louisiana Public Facilities Authority, Hospital Revenue, Willis-Knighton Medical Center (AMBAC Insured) (final maturity 9/1/27) (A-1+, VMIG-1) 07/07/99 3.550 400,000 ----------- TOTAL LOUISIANA (Cost $900,000) 900,000 ----------- MARYLAND (4.0%) 500,000 Maryland Health & Higher Ed. Fac. Authority Revenue Bonds (Catholic Health Initiatives)(Cost $500,000) (A-1+, VMIG-1) 07/07/99 3.500 500,000 ----------- MICHIGAN (1.6%) 200,000 Midland County Economic Development Corp. (Dow Chemical Company) Series B VRDN (Cost $200,000) (A-1, P-1) 07/01/99 3.750 200,000 -----------
See Accompanying Notes to Financial Statements. 6 WARBURG PINCUS WORLDPERKS TAX FREE MONEY MARKET FUND STATEMENT OF NET ASSETS (CONT'D)--JUNE 30, 1999 (UNAUDITED) - --------------------------------------------------------------------------------
RATINGS PAR (S&P/MOODY'S) MATURITY RATE%(DAGGER) VALUE ---- ---------------- ---------- -------- ------ MISSISSIPPI (4.0% $500,000 Mississippi Hospital Equipment & Facilities Authority Revenue Bond (North Mississippi Health Services) Series 1997 (Westdeutsche Landesbank Girozentrale LOC (Cost $500,000) (A-1+, VMIG-1) 10/08/99 3.200 $ 500,000 ----------- MISSOURI (3.9% 500,000 Kansas City, Industrial Development Authority Multifamily Housing Revenue Ref. Bonds (Sleepy Hollow Apts. Project) (Federal National Mortgage Assoc. LOC)(Cost $500,000) (A-1+, NR) 07/07/99 3.500 500,000 ----------- NEVADA (3.9%) 500,000 Clark County Airport Improvement Revenue Series 1993A DN (National Westminster LOC)(Cost $500,000) (A-1+, VMIG-1) 07/07/99 3.300 500,000 ----------- NEW JERSEY (5.5% 700,000 New Jersey Economic Development Authority Water Facilities Revenue Bond (United Water New Jersey Inc. Project) Series 1996A VRDN (AMBAC Insurance) (Cost $700,000) (A-1, VMIG-1) 07/01/99 3.100 700,000 ----------- NEW YORK (3.9%) 100,000 City of New York General Obligation Series A VRDN (Morgan Guaranty Bank LOC) (A-1+, VMIG-1) 07/01/99 4.000 100,000 300,000 New York State Energy Research & Development Authority Pollution Control Revenue Bond (Niagara Mohawk Power) Series A VRDN (Toronto Dominion LOC) (A-1+, VMIG-1) 07/01/99 3.500 300,000 100,000 New York State Job Development Authority Series B (LOC Fuji Bank) VRDN (Fuji Bank LOC) (A-1+, VMIG-1) 07/01/99 3.500 100,000 ----------- TOTAL NEW YORK (Cost $500,000) 500,000 ----------- NORTH CAROLINA (7.9%) 500,000 Charlotte Airport Refunding RB Series 1997A VRDN (MBIA Insurance LOC) (A-1+, VMIG-1) 07/07/99 3.400 500,000 500,000 Mecklenburg County General Obligation Series 1996B VRDN (A-1+, VMIG-1) 07/07/99 3.700 500,000 ----------- TOTAL NORTH CAROLINA (Cost $1,000,000) 1,000,000 ----------- OHIO (8.7%) 250,000 Butler County Ohio Bond Anticipation Notes (NR, MIG-1) 10/21/99 3.510 250,270 250,000 Butler County Ohio Bond Anticipation Notes (NR, MIG-1) 03/16/00 3.670 250,809 500,000 Ohio State Building Authority Series A 10/01/99 4.000 501,030 100,000 Ohio Water Development Authority Pollution Control Revenue Bonds (Cleveland Electric Co. Project) Series 1997B VRDN (FNB Chicago LOC) (A-1+, P-1) 07/07/99 3.650 100,000 ----------- TOTAL OHIO (Cost $1,102,109) 1,102,109 -----------
See Accompanying Notes to Financial Statements. 7 WARBURG PINCUS WORLDPERKS TAX FREE MONEY MARKET FUND STATEMENT OF NET ASSETS (CONT'D)--JUNE 30, 1999 (UNAUDITED) - --------------------------------------------------------------------------------
RATINGS PAR (S&P/MOODY'S) MATURITY RATE%(DAGGER) VALUE ---- ---------------- ---------- -------- ------ PENNSYLVANIA (7.1%) $ 100,000 Pennsylvania Higher Education Assistance Agency Student Loan Revenue Bond Series 1988A VRDN (Sallie Mae LOC) (A-1+, VMIG-1) 07/07/99 3.600 $ 100,000 300,000 Pennsylvania State Higher Education Revenue Bond (University of Pennsylvania Health Services Project) Series C (LOC Credit Suisse ) (A-1+, VMIG-1) 07/07/99 3.700 300,000 500,000 Philadelphia, Pennsylvania Water & Waste Revenue Bond Series 1997B (A-1+, VMIG-1) 07/07/99 3.300 500,000 ----------- TOTAL PENNSYLVANIA (Cost $900,000) 900,000 ----------- RHODE ISLAND (3.9%) 500,000 Rhode Island, State and Providence Plan. Multi-Modal General Obligation Bonds (Landesbank Hessen-Thuringen LOC) (Cost $500,000) (A-1+C, VMIG-1) 07/07/99 3.400 500,000 ----------- SOUTH CAROLINA (3.9%) 500,000 York County, South Carolina Pollution Control Revenue Bond (Cost $500,000) (A-1+, VMIG-1) 08/15/99 2.750 500,000 ----------- TENNESSE (3.2%) 400,000 Memphis, TN General Improvement Refunding Revenue Bond VRDN (Cost $400,000) (A-1+, VMIG-1) 07/07/99 3.550 400,000 ----------- VIRGINIA (3.8%) 485,000 Alexandria IDA RB (Super & Curr Project) Series 1997 VRDN (First Union National Bank of North Carolina LOC) (Cost $485,000) (A-1, NR) 07/07/99 3.700 485,000 ----------- WASHINGTON (2.4%) 300,000 Washington State Public Power Supply System Nuclear Project No. 1 Revenue Bonds Series 1993 (Cost $300,000) (A-1+, VMIG-1) 07/07/99 3.350 300,000 ----------- WEST VIRGINIA (3.9%) 500,000 Marion County, West Virginia Solid Waste Disposal Facilities Revenue Bond (Grant Town Project) Series D / (National Westminster Bank PLC LOC) (Cost $500,000) (A-1+, VMIG-1) 07/07/99 3.600 500,000 ----------- WISCONSIN (3.9%) 500,000 Oak Creek Pollution Control Revenue Bond (Wisconsin Electric Power Co. Project) VRDN (Cost $500,000) (NR, P-1) 07/07/99 3.450 500,000 -----------
See Accompanying Notes to Financial Statements. 8 WARBURG PINCUS WORLDPERKS TAX FREE MONEY MARKET FUND STATEMENT OF NET ASSETS (CONT'D)--JUNE 30, 1999 (UNAUDITED) - --------------------------------------------------------------------------------
VALUE ------ TOTAL INVESTMENTS AT VALUE (100.1%) (Cost $12,687,109*) $12,687,109 ----------- LIABILITIES IN EXCESS OF OTHER ASSETS (0.1%) (18,033) ----------- NET ASSETS (100.0%) (applicable to 12,669,076 shares) $12,669,076 =========== NET ASSETS VALUE, offering and redemption price per share ($12,669,076 (DIVIDE) 12,669,076) $ 1.00 ===========
INVESTMENT ABBREVIATIONS LOC = Letter of Credit NR = Not Rated VRDN = Variable Rate Demand Note - -------------------------------------------------------------------------------- (DAGGER) The interest rate shown is the rate as of June 30, 1999 and the maturity date shown is the longer of the next interest readjustment date or thedate the principal amount owed can be recovered through demand. * Also cost for federal income tax purposes. See Accompanying Notes to Financial Statements. 9 WARBURG PINCUS WORLDPERKS TAX FREE MONEY MARKET FUND MATURITY SCHEDULE OF PORTFOLIO--JUNE 30, 1999 (UNAUDITED) - -------------------------------------------------------------------------------- MATURITY SCHEDULE (DAYS) PAR PERCENTAGE OF PORTFOLIO ---------------- -------- ------------------------ (CUMULATIVE) 1-7 $ 9,685,000 76.4% 76.4% 8-14 0 0.0 76.4 15-30 500,000 3.9 80.3 31-60 500,000 3.9 84.2 61-90 0 0.0 84.2 91-120 1,250,000 9.9 94.1 121-150 0 0.0 94.1 Over 150 750,000 5.9 100.0 ---------- ----- $12,685,000 100.0% =========== ===== Average Weighted Maturity -- 31.48 days See Accompanying Notes to Financial Statements. 10 WARBURG PINCUS WORLDPERKS MONEY MARKET AND WORLD PERKS TAX FREE MONEY MARKET FUNDS STATEMENTS OF OPERATIONS For the Six Months Ended June 30, 1999 (Unaudited) - --------------------------------------------------------------------------------
WORLDPERKS WORLDPERKS TAX FREE MONEY MARKET FUND MONEY MARKET FUND ----------------- ----------------- INVESTMENT INCOME $316,250 $168,990 -------- -------- EXPENSES: Investment advisory 25,634 22,137 Administrative Services 13,178 11,430 Distribution fees 16,021 13,835 Registration 11,804 11,804 Audit 9,837 9,837 Blue Sky 9,837 9,837 Legal 9,837 9,837 Custodian 6,000 6,001 Transfer agent 2,950 2,950 Directors 2,460 2,460 Printing 1,969 1,969 Miscelleneous 1,968 1,968 -------- -------- 111,495 104,065 Less: fees waived, expenses reimbursed and transfer agent fee offsets (62,790) (62,005) -------- -------- Total expenses 48,705 42,060 -------- -------- Net investment income 267,545 126,930 -------- -------- NET REALIZED AND UNREALIZED LOSS FROM INVESTMENTS Net realized loss from security transactions (151) 0 -------- -------- Net increase in net assets resulting from operations $267,394 $126,930 -------- --------
See Accompanying Notes to Financial Statements. 11 WARBURG PINCUS WORLDPERKS MONEY MARKET AND WORLDPERKS TAX FREE MONEY MARKET FUNDS STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
WORLDPERKS WORLDPERKS TAX FREE MONEY MARKET FUND MONEY MARKET FUND --------------------------------- ------------------------------- FOR THE FOR THE SIX MONTHS FOR THE SIX MONTHS FOR THE ENDED YEAR ENDED ENDED YEAR ENDED JUNE 30, 1999 DECEMBER 31, JUNE 30, 1999 DECEMBER 31, (UNAUDITED) 1998* (UNAUDITED) 1998* -------------- ------------- ------------- ------------ FROM OPERATIONS: Net investment income $ 267,545 $ 135,178 $ 126,930 $ 72,430 Net realized gain from security transactions (151) 112 0 0 ----------- ----------- ----------- ----------- Net increase in net assets resulting from operations 267,394 135,290 126,930 72,430 ----------- ----------- ----------- ----------- FROM DISTRIBUTIONS: Dividends from net investment income (267,545) (135,178) (126,930) (72,430) ----------- ----------- ----------- ----------- FROM CAPITAL SHARE TRANSACTIONS (AT $1 PER SHARE): Proceeds from sale of shares 11,236,516 19,852,748 6,325,594 13,444,874 Reinvested dividends 254,841 121,553 115,760 62,708 Net asset value of shares redeemed (9,390,403) (7,148,907) (4,360,838) (3,019,022) ----------- ----------- ----------- ----------- Net increase in net assets from capital share transactions 2,100,954 12,825,394 2,080,516 10,488,560 ----------- ----------- ----------- ----------- Net increase in net assets 2,100,803 13,825,506 2,080,516 10,488,560 NET ASSETS: Beginning of period 12,925,506 100,000 10,588,560 100,000 ----------- ----------- ----------- ----------- End of period $15,026,309 $12,925,506 $12,669,076 $10,588,560 =========== =========== =========== =========== * For the period October 1, 1998 (Commencement of Operations) through December 31, 1998.
See Accompanying Notes to Financial Statements. 12 WARBURG PINCUS WORLDPERKS MONEY MARKET FUND FINANCIAL HIGHLIGHTS (For a Share of the Fund Outstanding Throughout Each Period) - --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED JUNE 30, 1999 PERIOD ENDED: (UNAUDITED) 1998 1 ----------- ------ PER-SHARE DATA Net asset value, beginning of period $ 1.00 $ 1.00 ------ ------ INVESTMENT ACTIVITIES: Net investment income .0207 .0115 ------ ------ DISTRIBUTIONS: From net investment income (.0207) (.0115) ------ ------ NET ASSETS VALUE, END OF PERIOD $ 1.00 $ 1.00 ====== ====== Total return 2.09%2 1.15%2 RATIOS AND SUPPLEMENTAL DATA: Net assets, end of period (000s omitted) $15,026 $12,926 Ratios of expenses to average net assets .76%3,4 .58%3,4 Ratio of net income to average net assets 4.17%4 5.13%4 Decrease reflected in above operating expense ratios due to waivers/reimbursements .98%4 1.24%4 - -------------------------------------------------------------------------------- 1 For the period October 1, 1998 (Commencement of Operations) through December 31, 1998. 2 Non-annualized. 3 Interest earned on uninvested cash balances is used to offset portons of the transfer agent expense. These arrangements had no effect on the fund's expense ratio. 4 Annualized.
See Accompanying Notes to Financial Statements. 13 WARBURG PINCUS WORLDPERKS TAX FREE MONEY MARKET FUND FINANCIAL HIGHLIGHTS (For a Share of the Fund Outstanding Throughout Each Period) - --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED JUNE 30, 1999 PERIOD ENDED: (UNAUDITED) 1998 1 ----------- ------ PER-SHARE DATA Net asset value, beginning of period $ 1.00 $ 1.00 ------ ------ INVESTMENT ACTIVITIES: Net investment income .0114 .0066 ------ ------ DISTRIBUTIONS: From net investment income (.0114) (.0066) ------ ------ NET ASSETS VALUE, END OF PERIOD $ 1.00 $ 1.00 ====== ====== Total return 1.14%2 .66%2 RATIOS AND SUPPLEMENTAL DATA: Net assets, end of period (000s omitted) $12,669 $10,589 Ratios of expenses to average net assets .76%3,4 .58%3,4 Ratio of net income to average net assets 2.29%4 2.91%4 Decrease reflected in above operating expense ratios due to waivers/reimbursements 1.12%4 1.31%4 - -------------------------------------------------------------------------------- 1 For the period October 1, 1998 (Commencement of Operations) through December 31, 1998. 2 Non-annualized. 3 Interest earned on uninvested cash balances is used to offset portons of the transfer agent expense. These arrangements had no effect on the fund's expense ratio. 4 Annualized.
See Accompanying Notes to Financial Statements. 14 WARBURG PINCUS WORLDPERKS MONEY MARKET AND WORLDPERKS TAX FREE MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS June 30, 1999 (Unaudited) - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES The Warburg Pincus WorldPerks Money Market Fund and the Warburg Pincus WorldPerks Tax Free Money Market Fund are registered under the Investment Company Act of 1940, as amended (1940 Act), as diversified, open-end management investment companies. Investment objectives for each fund are as follows: the WorldPerks Money Market Fund is designed to provide investors with high current income consistent with preservation of capital and liquidity; and the WorldPerks Tax Free Money Market Fund is designed to provide investors with as high a level of current income that is exempt from federal personal income taxes as is consistent with preservation of capital and liquidity. The net asset value of each fund is determined twice daily as of noon and the close of regular trading on the New York Stock Exchange. Each fund's investments are valued under the amortized cost method, which approximates market value, unless a fund's Board of Directors determines that using this method would not reflect an investment's value. Amortized cost involves valuing a fund holding initially at its cost and then assumes a constant amortization to maturity of any discount or premium. The amortized cost method ignores any impact of fluctuating interest rates. Security transactions are accounted for on a trade date basis. Interest income is recorded on the accrual basis. The cost of investments sold is determined by use of the specific identification method for both financial reporting and income tax purposes. Dividends from net investment income are declared daily and paid monthly. Distributions of net realized capital gains, if any, are declared and paid annually, although the WorldPerks Money Market Fund may declare and pay short-term capital gains, if any, periodically as the Board of Directors determines. To the extent that a net realized capital gain can be reduced by a capital loss carryover, such gain will not be distributed. Income and capital gain distributions are determined in accordance with federal income tax regulations which may differ from generally accepted accounting principles. No provision is made for federal income taxes as it is each fund's intention to continue to qualify for and elect the tax treatment applicable to regulated investment companies under the Internal Revenue Code of 1986, as amended, and make the requisite distributions to its shareholders which will be sufficient to relieve it from federal income and excise taxes. 15 WARBURG PINCUS WORLDPERKS MONEY MARKET AND WORLDPERKS TAX FREE MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS June 30, 1999 (Unaudited) - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D) Each fund may enter into repurchase agreement transactions. Under the terms of a typical repurchase agreement, a fund acquires security subject to an obligation of the seller to repurchase. Securities pledged as collateral for repurchase agreements are held by the fund's custodian bank until the agreements mature. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal; however, in the event of default or bankruptcy by the other party to the agreement, retention of the collateral may be subject to legal proceedings. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The funds have an arrangement with their transfer agent whereby interest earned on uninvested cash balances was used to offset a portion of their transfer agent expense. For the period ended June 30, 1999, each fund received credits or reimbursements under this arrangement as follows: FOR SIX MONTHS ENDED FUND JUNE 30, 1999 ---- ---------------- WorldPerks Money Market 0 WorldPerks Tax Free Money Market 0 2. INVESTMENT ADVISER AND SUB-ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR On July 6, 1999, Credit Suisse Asset Management, LLC(CSAM) became each fund's investment adviser as a result of the completion of the previously announced acquisition of Warburg Pincus Asset Management, Inc. (WPAM) by Credit Suisse Group (Credit Suisse) and the combination of WPAM with Credit Suisse's existing U.S. asset management business. CSAM is an indirect wholly-owned U.S. subsidiary of Credit Suisse. For its investment advisory services, CSAM receives a fee calculated at an annual rate of .40% of each fund's average daily net assets. For the six months ended June 30, 1999, investment advisory fees, voluntary waivers and expense reimbursements were as follows:
GROSS NET EXPENSE FUND ADVISORY FEE WAIVER ADVISORY FEE REIMBURSEMENT ---- ------------ ---------- ------------ ------------- WorldPerks Money Market $25,634 $(25,634) $ 0 $(24,340) WorldPerks Tax Free Money Market 22,137 (22,137) 0 (28,800)
16 WARBURG PINCUS WORLDPERKS MONEY MARKET AND WORLDPERKS TAX FREE MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS (CONT'D) June 30, 1999 (Unaudited) - -------------------------------------------------------------------------------- 2. INVESTMENT ADVISER AND SUB-ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR -- (CONT'D) BlackRock Institutional Management Corporation (BIMC), formerly PNC Institutional Management Corporation, a wholly-owned susidiary of PNC Bank, N.A., serves as each fund's sub-investment adviser. From its investment advisory fee, CSAM pays BIMC a fee. No compensation is paid by the WorldPerks Funds to BIMC for its sub-investment advisory service. Credit Suisse Asset Management Limited (CSAM Ltd.), an indirect wholly-owned subsidiary of Credit Suisse, and PFPC Inc. (PFPC), an indirect, wholly-owned subsidiary of PNC Bank Corp. serve as each fund's co-administrator. For its administrative services, CSAM Ltd. currently receives a fee calculated at an annual rate of .10% of each fund's average daily net assets. For the six months ended June 30, 1999, administrative services fees earned and voluntarily waived by CSAM Ltd. were as follows:
FUND CO-ADMINISTRATION FEE WAIVER CO-ADMINISTRATION FEE ---- --------------------- -------- --------------------- WorldPerks Money Market $6,408 $(6,408) $ 0 WorldPerks Tax Free Money Market 5,534 (5,534) 0
For administrative services, PFPC currently receives a fee calculated at an annual rate of .10% on each fund's first $500 million in average daily net assets, .075% on the next $1 billion in average daily net assets, and .05% of average daily net assets in excess of $1.5 billion. For the six months ended June 30, 1999, administrative service fees earned and voluntarily waived by PFPC (including out-of-pocket expenses) were as follows:
NET FUND CO-ADMINISTRATION FEE WAIVER CO-ADMINISTRATION FEE ---- --------------------- -------- --------------------- WorldPerks Money Market $6,770 $(6,408) $362 WorldPerks Tax Free Money Market 5,896 (5,534) 362
It is currently contemplated that, on or before January 6, 2000, CSAMLtd. will be replaced as co-administrator of each fund by Credit Suisse Asset Management Securities, Inc. (CSAMSI), an indirect wholly-owned subsidiary of Credit Suisse that was formerly known as Counsellors Securities Inc. CSAMSI serves as each fund's distributor. For its distribution services, CSAMSI receives a fee calculated at an annual rate of .25% of the average 17 WARBURG PINCUS WORLDPERKS MONEY MARKET AND WORLDPERKS TAX FREE MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS (CONT'D) June 30, 1999 (Unaudited) - -------------------------------------------------------------------------------- 2. INVESTMENT ADVISER AND SUB-ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR -- (CONT'D) daily net assets of each fund. For the six months ended June 30, 1999, shareholder servicing and distribution fees earned by CSAMSI were as follows: FUND DISTRIBUTION FEE ---- ---------------------- WorldPerks Money Market $16,021 WorldPerks Tax Free Money Market 13,835 On June 20, 1999, the Fund's Board of Directors approved Provident Distributors, Inc. (PDI) as each Fund's distributor, effective on or before January 6, 2000. PDI, a Delaware corporation, is a registered Broker-dealer and serves as distributor to other mutual funds. 3. CAPITAL SHARE TRANSACTIONS Transactions in shares of each fund were as follows:
WORLDPERKS WORLDPERKS MONEY MARKET TAX FREE MONEY MARKET --------------------------------------- ------------------------------------- FOR THE PERIOD FOR THE PERIOD OCTOBER 1, 1998 OCTOBER 1, 1998 (COMMENCEMENT OF (COMMENCEMENT OF FOR THE OPERATIONS FOR THE OPERATIONS SIX MONTHS ENDED THROUGH SIX MONTHS ENDED THROUGH JUNE 30, 1999 DECEMBER 31, 1998 JUNE 30, 1999 DECEMBER 31, 1998 --------------- ------------------ --------------- ------------------ Shares sold $11,236,516 $19,852,748 $6,325,594 $13,444,874 Shares issued to shareholders on reinvestments of dividends 254,841 121,553 115,760 62,708 Shares redeemed (9,390,403) (7,148,907) (4,360,838) (3,019,022) ----------- ----------- ---------- ----------- Net increase in shares 2,100,954 12,825,394 2,080,516 10,488,560 ----------- ----------- ---------- -----------
4. LIABILITIES At June 30, 1999 the funds had the following liabilities: WORLDPERKS WORLDPERKS MONEY MARKET TAX FREE MONEY MARKET -------------- ------------------------ Dividends Payable $1,189 $1,816 18 WARBURG PINCUS WORLDPERKS MONEY MARKET AND WORLDPERKS TAX FREE MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS (CONT'D) June 30, 1999 (Unaudited) - -------------------------------------------------------------------------------- 5. NET ASSETS At June 30, 1999, capital contributions and accumulated net realized loss from security transactions have been adjusted for permanent book/tax differences. Net assets at June 30, 1999, consisted of the following: WORLDPERKS WORLDPERKS MONEY MARKET TAX FREE MONEY MARKET -------------- ---------------------- Capital contributed, net $15,026,348 $12,669,076 Accumulated net realized gain/(loss) from security transactions (39) 0 ----------- ----------- Net assets $15,026,309 $12,669,076 =========== =========== 6. RESULTS OF SPECIAL MEETING OF SHAREHOLDERS At a special meeting of shareholders held on May 21, 1999, four proposals were submitted for the vote of shareholders of the Funds. The proposals and voting results were: 1. To approve a new investment advisory agreement between each fund and CSAM.
WORLD PERKS MONEY % OF SHARES TO TOTAL % OF SHARES TO TOTAL MARKET FUND SHARES OUTSTANDING SHARES SHARES VOTED ---------------- ------ -------------------- -------------------- For 7,195,639.7100 58.5756% 95.5767% Against 201,544.0000 1.6407% 2.6770% Abstain 131,469.2300 1.0702% 1.7463% WORLD PERKS MONEY % OF SHARES TO TOTAL % OF SHARES TO TOTAL MONEY MARKET FUND SHARES OUTSTANDING SHARES SHARES VOTED ----------------- ------ -------------------- -------------------- For 8,098,863.5600 73.4264% 92.5890% Against 566,455.0500 5.1356% 6.4759% Abstain 81,789.9700 0.7415% 0.9351%
19 WARBURG PINCUS WORLDPERKS MONEY MARKET AND WORLDPERKS TAX FREE MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS (CONT'D) June 30, 1999 (Unaudited) - -------------------------------------------------------------------------------- 6. RESULTS OF SPECIAL MEETING OF SHAREHOLDERS -- (CONT'D) 2. To elect Directors of each fund.
WORLD PERKS MONEY MARKET FUND FOR WITHHELD ---------------- -------------- ------------ R.H. Francis 7,236,351.5700 292,301.3700 J.W. Fritz 7,236,351.5700 292,301.3700 J.E. Garten 7,236,351.5700 292,301.3700 J.S. Pasman 7,236,351.5700 292,301.3700 W.W. Priest 7,236,351.5700 292,301.3700 S.N. Rappaport 7,236,351.5700 292,301.3700 A.M. Reichman 7,236,351.5700 292,301.3700 A.B. Trowbridge 7,236,351.5700 292,301.3700 WORLD PERKS TAX-FREE MONEY MARKET FUND FOR WITHHELD ---------------- -------------- ------------ R.H. Francis 8,325,794.1900 421,314.3900 J.W. Fritz 8,325,794.1900 421,314.3900 J.E. Garten 8,140,688.5300 606,420.0500 J.S. Pasman 8,325,794.1900 421,314.3900 W.W. Priest 8,325,794.1900 421,314.3900 S.N. Rappaport 8,140,688.5300 606,420.0500 A.M. Reichman 8,140,688.5300 606,420.0500 A.B. Trowbridge 8,325,794.1900 421,314.3900
3. To ratify the selection of PricewaterhouseCoopers LLP as the independent accountants for each fund.
WORLD PERKS MONEY % OF SHARES TO TOTAL % OF SHARES TO TOTAL MARKET FUND SHARES OUTSTANDING SHARES SHARES VOTED ---------------- ------ -------------------- -------------------- For 7,353,133.9800 59.8577% 97.6687% Against 109,387.2500 0.8905% 1.4529% Abstain 66,131.7100 0.5383% 0.8784% WORLD PERKS TAX-FREE % OF SHARES TO TOTAL % OF SHARES TO TOTAL MONEY MARKET FUND SHARES OUTSTANDING SHARES SHARES VOTED ---------------- ------ -------------------- -------------------- For 8,420,158.2900 76.3394% 96.2622% Against 187,588.0600 1.7007% 2.1446% Abstain 139,362.2300 1.2635% 1.5932%
20 WARBURG PINCUS WORLDPERKS MONEY MARKET AND WORLDPERKS TAX FREE MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS (CONT'D) June 30, 1999 (Unaudited) - -------------------------------------------------------------------------------- 6. RESULTS OF SPECIAL MEETING OF SHAREHOLDERS -- (CONT'D) 4. To approve a new sub-investment advisory agreement between each fund, CSAM and the fund's sub-investment adviser.
WORLD PERKS MONEY % OF SHARES TO TOTAL % OF SHARES TO TOTAL MARKET FUND SHARES OUTSTANDING SHARES SHARES VOTED ---------------- ------ -------------------- -------------------- FOR 7,089,350.5600 57.7104% 94.1649% Against 261,765.2600 2.1309% 3.4769% Abstain 177,537.1200 1.4452% 2.3582% WORLD PERKS TAX-FREE % OF SHARES TO TOTAL % OF SHARES TO TOTAL MONEY MARKET FUND SHARES OUTSTANDING SHARES SHARES VOTED ---------------- ------ -------------------- -------------------- For 7,702,486.2800 69.8328% 88.0575% Against 964,673.2800 8.7460% 11.0285% Abstain 79,949.0200 0.7248% 0.9140%
7. YEAR 2000 COMPLIANCE Many Services provided to the portfolios and their shareholders by CSAM and certain of its affiliates (CSAMService Providers) and the funds' other service providers rely on the functioning of their respective computer systems. Many computer systems cannot distinguish the year 2000 from the year 1900, resulting in potential difficulty in performing various calculations (Year 2000 Issue). The Year 2000 Issue could potentially have an adverse impact on the handling of security trades, the payment of interest and dividends, pricing, account services and other portfolio operations. The CSAM Service Providers recognize the importance of the Year 2000 Issue and are taking appropriate steps necessary in preparation for the year 2000. The CSAMService Providers anticipate that their systems and those of the funds' other major service providers will be adapted in time for the Year 2000. The CSAM Service Providers have completed mission critical systems testing and have participated in industry-wide testing programs. In addition, the CSAMService Providers are formulating a contingency plan to address the Year 2000 Issue and anticipate completion of the plan by the end of the third quarter of 1999. The CSAM Service Providers continue to monitor the Year 2000 Issue and its potential impact on the funds. However, there can be no assurance that these steps will be sufficient to avoid any adverse impact on the funds nor can there be any insurance that the Year 2000 Issue will not have an adverse effect on the funds' investments or on global markets or economies, generally. 21 This page intentionally left blank This page intentionally left blank This page intentionally left blank WARBURG PINCUS FUNDS (LOGO) [GRAPHIC OMITTED] WARBURG PINCUS WORLDPERKS FUNDS, P.O. BOX 9030, BOSTON, MA 02205-9030 800-WARBURG (800-927-2874) (BOX) WWW.WARBURG.COM CREDIT SUISSE ASSET MANAGEMENT SECURITIES INC., DISTRIBUTOR. FFNWF-3-0699 -----END PRIVACY-ENHANCED MESSAGE-----